RICHMOND – Governor Bob McDonnell today announced that sales of Virginia wine reached an all-time high in fiscal year 2011, increasing by 11.4% from fiscal year 2010.

Governor McDonnell Announces Sales of Virginia Wines Reach All-Time High ~Sales Increase Over 11% in FY2011; Domestic and International Promotion of Virginia Wine is Component of Governor’s Economic Development Initiatives~ RICHMOND – Governor Bob McDonnell today announced that sales of Virginia wine reached an all-time high in fiscal year 2011, increasing by 11.4% from fiscal year 2010. Virginia wineries sold 462,112 cases of wine in FY 2011. That figure is up from the previous fiscal year’s benchmark of 414,785 cases sold. According to figures from the Virginia Department of Alcohol Beverage Control, total sales of Virginia wine amounted to almost $1.8 million in wine liter tax collections during the fiscal year ending June 30, 2011. The total wine liter tax collected by the state derived from the sale of Virginia wine in fiscal year 2010 amounted to just over $1.6 million. The Virginia wine liter tax is applied at a rate of $3.60 per case of wine. Speaking about the increase in Virginia wine sales, Governor McDonnell said, “The increase in Virginia wine sales and in the Virginia wine liter tax collections further illustrates that Virginia wines are being recognized and chosen by more consumers both here and abroad. I commend our winemakers and growers who are producing a world class product. With the increase in sales in Virginia, in other states around the country, and in key export markets like the United Kingdom and China, more funds can be dedicated to research, education and marketing which, in turn, will lead to more job creation and economic development opportunities for our thriving agricultural sector.� The new wine liter tax information also shows dramatic increases in sales during the state’s two largest marketing promotions, both of which occurred during the last fiscal year. Virginia wine sales increased by 14% over the previous year’s total during October’s “Virginia Wine Month 2010.� During March’s “Love by the Glass� Virginia Wine Week, Virginia wine sales increased 17% over the previous year’s celebration week. Secretary of Agriculture and Forestry Todd P. Haymore stated, “We continue to be pleased with the sales growth of Virginia wine and the strong partnership that we’ve struck with the wine industry. Working with our private sector partners and our colleagues at the Virginia Tourism Corporation and the Virginia Wine Marketing Office, the Governor, the First Lady, and I are going to continue to spread the good news about Virginia wines even farther. With the increased emphasis to expand our footprint in the United States as well as our international marketing efforts, we hope to build this upward trend. We believe that the growth of this industry and of all our unequalled Virginia agricultural products will lead to increased employment, increased tax revenue and tourism, and the preservation of valuable, working farmland.� Promotion of the Virginia wine industry both domestically and internationally is one of Governor McDonnell’s many economic development and jobs creation initiatives. During the last two sessions, the McDonnell administration has worked with the General Assembly to establish a reimbursable tax credit program for the establishment or expansion of vineyards and wineries and to more than the double amount of funds from the wine liter tax placed in the Virginia Wine Promotion Fund for research, education, and marketing programs. Governor McDonnell also has promoted the sale of Virginia wines during trade and marketing missions to the United Kingdom, Japan, China and South Korea. In addition, First Lady Maureen McDonnell has made the promotion of Virginia wines and winery tourism a key component of her First Lady’s Initiative Team Effort (FLITE). She too has promoted the sale of Virginia wines abroad and has visited wineries across the state with restaurant owners, sommeliers, chefs, grocers, retail shop owners, and others since FLITE was launched. Virginia is the nation’s fifth largest state in number of wineries and sixth largest wine grape producer. According to the most recent economic impact study, the Virginia wine industry employs more than 3,000 people and contributes almost $350 million to the Virginia economy on an annual basis. The study reflected the impact of 120 wineries in 2005; today, there are nearly 200 farm wineries in the state. A new economic impact study will be completed in fiscal year 2012. For more information about the Virginia wine industry, please visit www.virginiawine.org or contact Annette Ringwood Boyd at (804) 344-8200.